The following is post from one of Lend Link's leading private lenders, Home Ownership Solutions Inc.:
This difficult and unsettled market has offered a cool reception to new buyers; tougher qualifying criteria, higher rates and lower or falling values mean many buyers are unable to close on purchases. Many experts believe this will result in increased sales activity and, of course, crushed dreams of home ownership.
Home Ownership Solutions’ blanket strategy has alleviated some of these challenges. Here are two of several case studies that we have closed on:
Case 1 – Bridge to Lower Rates
Young professional and fiancé purchased new-build condo several years ago. Their dream of a first home together this Spring was almost crushed by the current market. The couple’s combined income is sufficient to service the loan, but not under qualifying rates, in the current rate environment. The bride-to-be’s father is willing to help, but is unwilling to take out a ‘cash gift’ mortgage on their free-and-clear home. The couple believes rates will come off within 12 to 18 months, at which time they expect to refinance with a mainstream institution.
Home Ownership Solutions will:
· Blanket with the father’s home (no cash outlay for the father)
· Due to low combined LTV, will allow 85% financing on the condo
· Due to low LTV will buy-down the rate to as low as 4.99%
· Offered an 18 month term with 2 month breakage
Case 2 – 100% Financed Bridge to a Sale
GTA self-employed family has a Family Home (low mortgage), a Rental Condo mortgaged at 70% and a New Build Condo they wish to take possession of and put up for sale. They initially desired to leverage the rental Condo and the Family Home to purchase the New Build with 65% LTV, to facilitate the purchase financing in this tight market. They expect to list the new Purchase after possession.
Home Ownership Solutions will:
· Blanket the three properties
· Due to low combined LTV, will finance 100% of the purchase, plus fees (effectively 100%+ financing)
· With 100% financing of the purchase, the loan is effectively priced as a Second Blanket on which we offered 9.99% financing, with an option to buy-down the rate to 8.99%, and an option to prepay, or finance the payments for as long as 120 days
Please talk to us about the various creative ways in which we can finance your clients.
All our loans are administered by Lend Link Incorporated (lendlink.net). Lend Link is a full Front and Back Office Licensed and Regulated Loan Administration Company specifically designed to make you a Plug-and-Play Private Lender. Reach out to Lend Link if you wish to build your own Private Lending Platform.